Sirtex shares are tanking on a class action

Medical device maker Sirtex, which earlier this month dismissed its CEO, now faces a class action by disgruntled shareholders.

A short time ago, the company’s shares were down 6.4% to $13.46. They have almost halved since December after a profit downgrade.

Gilman Wong had his contract as CEO terminated following an investigation into share trades made before the market was warned of a downturn in sales.

Today Sirtex says it has received a draft statement of claim from the firm Portfolio Law, foreshadowing action in the Federal Court alleging breaches of continuous disclosure obligations and of misleading and deceptive conduct.

The action refers to a statement by the company in August that “double digit dose sales growth to continue in FY17”.

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